Mazagon Dock Shipbuilders (MAZDOCK) Q2 24/25 earnings summary

Executive summary

• Consistent financial performance in Q2 and H1 FY25, maintaining trends from the past two years and delivering 802 vessels since 1960, including 28 warships and 7 submarines.

• Major project deliveries (submarines, destroyers, frigates) are on track, with some ahead of schedule and minor delays being addressed.

• Strong order book of ₹39,872 crore as of September 30, 2024, with robust pipeline in defense and commercial projects.

• Consistent profitability for over 20 years, zero debt, and regular dividend payouts.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved by the Board on November 5, 2024.

Financial highlights

• Standalone Q2 FY25 revenue from operations: ₹3,022 crore, up from ₹2,628 crore in Q2 FY24; consolidated Q2 FY25 revenue: ₹2,75,683 lakhs, up from ₹1,82,770 lakhs in Q2 FY24.

• Standalone Q2 FY25 PAT: ₹751 crore, up from ₹564 crore in Q2 FY24; consolidated Q2 FY25 net profit: ₹58,508 lakhs, up from ₹30,387 lakhs in Q2 FY24.

• Consolidated H1 FY25 revenue: ₹5,114 crore, up from ₹4,485 crore in H1 FY24; PAT: ₹1,281 crore, up from ₹647 crore.

• Operating margin for Q2 FY25 rose to 26.21% from 17.64% year-over-year; consolidated H1 FY25 operating margin: 21.59%, up from 7.64%.

• Cash balance stands at approximately INR 4,000 crores, primarily in liquid deposits; cash and cash equivalents at September 30, 2024, were ₹3,45,669 lakhs (consolidated).

Outlook and guidance

• Revenue growth guidance for FY25 is 10%-12% over the previous year, with robust revenue visibility supported by a strong order book.

• H2 margins expected to be similar to H1, with normalized PBT margins of 12%-15% for new projects.

• CapEx of INR 5,000 crores planned over the next few years to double capacity and support future growth.

• Interim dividend of ₹23.19 per equity share declared for FY25.